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There is a very large body of evidence that demonstrates consumers are unwilling to pay higher prices for environmental benefits. The entire premise of Pigouvi
by anonuser123456 3y ago
There is a very large body of evidence that demonstrates consumers are unwilling to pay higher prices for environmental benefits.
The entire premise of Pigouvian taxes is that they force consumers to pay the external cost, not let them optionally avoid them. This leads to substitution effects lowering consumption of the pollutant.
All market participants must be subject to that price or you introduce arbitrage opportunity.
Information alone is not enough.